the bank for safekeeping. As and when money is needed, it can be withdrawn from the ATM. Let them know that money is really important, and only if you are willing to work hard will you get money.
Ages 8-10: In this age, the kids are a bit more mature. They understand that money is valuable and should be used carefully to get essential things. Teach your kids how to save and estimate the value of things. The first lesson would be to give your kid a certain amount of money every month similar to pocket money. If your kid demands a new toy, ask them to save the pocket money for a few months and only then will he or she get the toy. This way your child will learn to save and understand that everything cannot be bought by thinking impulsively. Every financial decision needs to be planned and then taken into account. You can also give examples from real life or some stories that the kid understands. Explain to them the differences between investments and savings. A kid should also understand the difference between necessary expenditures and luxury expenditures. For example, purchase of groceries every month is a routine expenditure and is a necessity as you need food to eat. However, going on a vacation is luxury expenditure as it is not critical for living. Such real life examples make your kid understand such complex concepts better.
Ages 10-13: This age band is when the kid is entering his teens and is keen on learning new things and experimenting every day. You should now introduce him to the basic ideas of debt and investments. Explain what a savings account is, why the account earns interest and how investments are brought about. Explain the ways these accounts can be used for future goals or how saving is essential to support the family in times of crisis. Don’t expect the kid to get every tiny detail of how to run these accounts, but the basic idea should be understood. You can also try to begin the education of compulsory